How to Sell RBF2010 HISA Fund Units and Immediately Buy a Stock or ETF at RBC Direct Investing

Sometimes you decide suddenly to buy more units in an ETF or shares in a company. Perhaps the market had a stomach-twisting drop and you want to catch the low immediately. Maybe you’d been meaning to pick up a stock and realize it will go ex-dividend in a day or two. Either way, you may find your cash is sitting in your investment savings account fund not in your portfolio’s cash account. Here’s how you can sell some of your RBF2010 HISA fund units immediately so that you can buy some stock or ETF units that same day in your RBC Direct Investing account.


NOTE: I am requesting redemption of my high interest savings account fund units before 2 p.m. ET so it should settle in (T+1). If the mutual fund cutoff time for your brokerage has passed, you may wish to call a representative and check when your order will settle before initiating a purchase.

Should It Be Possible to Sell Units in a HISA Fund and Buy an Equity On the Same Day?

Being a nervous Nelly, I checked the following procedure should work with RBC Direct Investing by phone before attempting the transaction. The client representative recommended I make sure that my equity/ETF purchase request shows in my outstanding orders just in case the system does not accept it properly due to a 0 cash balance in the account.

As you’ll see below, the rep’s advice was reasonable but unnecessary.

Executing a Same Day HISA Sell and Stock or ETF Buy at RBC Direct Investing

Sign In to Your RBC Direct Investing Account

  1. Go to rbcdirectinvesting.com
    1. Click on the Sign In button.
    2. In the Client Card Number: field type in your number.
    3. In the Password: field, type in your password.
    4. If desired, select the appropriate page from the Go to: drop-down list.
    5. Click on the Sign in button.

Check How Much Cash You’ll Need

  1. Click on the Quotes & Research tab.
  2. To see the 20-minute delayed price
    1. In the Symbol or Name text field, type the ticker symbol for the stock or ETF you are considering buying.
    2. If necessary, click to select US, or leave it set to the default of CDN.
    3. Click on the Get Quote button.
  3. Check
    • the vital statistics for what you wish to buy including the Ex-Dividend date etc.
    • the 20-minute delayed price.
  4. Use this price, or a similar value, to calculate how much cash you need to buy your desired number of shares or units.

Sell Your RBF2010 High Interest Savings Account Fund Units

  1. Click on the My Portfolios tab.
  2. In the Mutual Funds section you should see your existing holding of RBF2010 the RBC investment savings account fund.
    Under the Actions column, click on the Sell link.
  3. To sell some of your units:
    1. Check that you have selected the correct Account # from the drop-down list.
      For example, I have selected my CAD RRSP account.
    2. In the Amount: field type in the number of dollars of the savings account you wish to cash out.
    3. Ensure the Dollars Including Commission button is selected.
    4. Click on the Refresh Quote button.
      It should state that the NAVPS/Yield is 10.0000 CAD.
      Note: You must maintain a balance of at least $500 in the HISA or you will have to withdraw all of your funds.
    5. Confirm that the telephone number in the Contact Phone: field is correct.
    6. Click on the Continue button.
  4. Click on the Confirm button.
  5. Make a copy of the Transaction screen for your records.
    In particular you may want to have the Order ID number in case you need to talk to RBC Direct Investing about the sale.

To Buy the Stock or ETF at RBC Direct Investing

  1. Click on the Trade tab.
  2. To buy the equity:
    1. From the Account #: drop-down list, select within which account you wish to make the purchase.
      For example, I selected my CAD RRSP account.Very interesting! The Available Funds is reported as the amount I just sold of my RBF2010 HISA. So this should go through properly!
    2. From the Action: drop-down list, select Buy.
    3. In the Symbol: field, type the ticker symbol for the stock or ETF.
    4. From the Market: drop-down list select CDN or US.
    5. Click on the Show Quote button.
    6. In the # of Shares: field, type you many shares or units you wish to purchase.
    7. In the Price: section, click to select Limit.
    8. In the Limit Price field, type in the price you have decided to pay for the shares or units, assuming you can get a fill at that value.
    9. From the Good Through: drop-down list, select how long the order should stand.
    10. In the Special Instructions: section, select either Any Part or All or None, if you can.
      (It won’t let me select All or None.)
    11. Check the Contact Phone: field is correct.
    12. Click on the Continue button.
  3. Review the details of your order on the Confirm Transaction screen.
    NOTE: This is your last chance to change or cancel the order. You do not enter a transaction password at RBC Direct Investing!
    If the details look acceptable, click on the Confirm button.
  4. Make a copy of your order from the Transaction Complete screen and save it to a document for reference.

How To Confirm Your Order Was Placed Properly at RBC Direct Investing

  1. Click on the My Portfolios tab.
  2. Click on the Order Status link in the list along the top of the screen.
    You should see

    • a line for your sale of your units of RBF2010 the investment savings account fund, and
    • another line for the purchase order request for your shares or ETF units.

Securely Exit RBC DI When You Are Finished

  1. If you are finished with your RBC Direct Investing account, click on the Sign Out button.
  2. For increased security, clear your cache and close your Browser session.

 

Now you wait to see if your order fills!


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Have you sold units in a HISA and bought equities or ETFs immediately at your brokerage? Did the sale and purchase move through smoothly? Please share your experiences with a comment.

4 thoughts on “How to Sell RBF2010 HISA Fund Units and Immediately Buy a Stock or ETF at RBC Direct Investing

  1. All of this is fine but you don’t need any cash in your cash account at all to buy funds, ETFs or stocks. You just have to make sure the funds are in there the day the trade is settled. So you have anywhere from a 3- to 5-biz day window, You can even see in your account when the settlement date is.

    So, say I set a Stop Limit price at what I want to buy an ETF or stock at. If that trade goes through, you’ll see that on that day and then in your Activity link you’ll see when it’ll settle. So let your $ sit in your RBC e-savings account until the day of ssttlement. Zip it over to your RBC chequing account and transfer in.

    You can even do this for your TFSA or RRSPs. Just make sure you wing the money DIRECTLY into the account you are settling the trade with. The funds will be available immediately and cover you trade.

    • True.

      I just am very suspicious and nervous so I wanted to test whether or not the sale of RBF2010 would really happen in a timely basis. If it took them more than 3 days to fulfill the sale request, I couldn’t cover the cost of my purchase.

      (Some comment Readers should be careful about the TFSA/RRSP comment: you can only put in more cash if you have contribution room left, and if your brokerage puts cash into your account immediately when you request a transfer: it often takes more than 3 days for BMO InvestorLine, for e.g., to complete a transfer in of cash.)

  2. Does this work the same with the BMO investorline HISA? I understood the bmo hisa is a mutual fund and you don’t see the cash right away, have to wait a couple days.

    • When I tested it (a few times) with AAT770 at BMO InvestorLine, I was always able to place the sell order for AAT770, place the buy order for the stock/ETF, and have both trades settle properly to pay the bill. I’m always a bit nervous so I do the sell order first and keep a copy of that order including the time stamp, so that I can argue with InvestorLine if I have to, but so far it’s always worked ok.

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